Binance Tightens South African Compliance Rules

Binance is tightening its compliance rules for South African users regarding cryptocurrency transfers starting April 30, 2025.

Users will be required to provide detailed sender and receiver information for all crypto deposits and withdrawals. Specifically, for deposits, users must disclose the sender’s full name, country of residence, and, if applicable, the originating crypto exchange.

Withdrawals will require beneficiary details before processing. Failure to provide this information may lead to delayed transactions or funds being returned to the sender. This update applies only to deposits and withdrawals, not trading or other platform features.

This move aligns with South Africa's broader regulatory efforts to enhance oversight of the crypto sector, driven by directives such as Directive 9, which enforces the 'travel rule.'

The travel rule mandates that client details accompany both domestic and cross-border crypto transfers, including full name, identity or passport number, date and place of birth, residential address (if available), and wallet addresses for transactions over R5,000.

These regulations respond to South Africa's greylisting by the Financial Action Task Force (FATF) and aim to prevent money laundering, terrorism financing, and other illicit activities via crypto transactions.

Crypto Asset Service Providers (CASPs) like Binance must comply with these rules by performing customer due diligence, verifying identities, monitoring transactions for suspicious activity, and maintaining detailed transaction records.

Non-compliance risks administrative sanctions under South Africa’s Financial Intelligence Centre Act. The regulatory environment reflects South Africa's designation of crypto assets as financial products and the inclusion of CASPs as accountable institutions since late 2022.

Binance's new compliance measures for South African users are part of a national effort to enforce stricter identity verification and transaction monitoring in crypto transfers, ensuring alignment with international anti-money laundering standards and local regulatory demands.

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